Primary Industry
The primary industry is an economic sector that involves the production and extraction of natural resources. It is an essential activity in the economy of any country, as it is the basis of economic wealth and the main source of raw materials, products and services. The primary industry encompasses all types of activities related to the extraction, transformation and distribution of mineral, animal and vegetable resources extracted from the environment: oil and gas extraction, metallic and non-metallic mineral extraction, agriculture and forestry, as well as fishing and hunting.
The production of the primary industry is limited to the immediate natural resources of each locality and the productivity of its labor. This means that it does not depend on the production or consumptions of other countries, since it does not produce finished products and the competitive advantages do not depend, for example, on the ability to buy cheap raw materials and transform them into products more cheaply and efficiently than other countries.
For example, in the case of OPEC, an organization consisting of oil-producing countries, it depends on the price of oil and its own capacity to extract and refine it in order to generate revenue. This is why the production capacity of some countries, overall, has increased: new technologies have allowed for the discovery of new reserves and for the increase in the productivity of current reserves.
Secondary Industry
The secondary industry, also known as secondary manufacturing, is an economic sector that includes the transformation and fabrication of products from raw materials. It includes industrial activities such as the manufacture of chair and table, the production of cars and other transportation vehicles, and the production of electrical and electronic equipment.
The main objective of the secondary industry is to produce goods that can be bought and sold in the market and can be used in various activities and production processes. This implies that the capacity of companies and businesses that belong to the secondary sector depends largely on the availability of technologies and resources, such as raw materials and machinery, which are required for the production of such goods and services.
For example, if a company needs to manufacture furniture, it must have access to materials such as wood, metal and plastic, as well as the necessary machinery and equipment. In the same way, the production of cars and other transportation vehicles implies the availability of metals and plastics, as well as technologies such as welding and painting.
Tertiary Industry
The tertiary industry is an economic sector that is responsible for providing services to the populations. It includes activities such as the trade and sale of goods, the provision of personal services, transportation and communications, as well as activities such as healthcare, education and entertainment.
The tertiary sector is the most dynamic and versatile sector of the economy, as it does not require large resources and can be adapted to the needs of the population. It is a sector based on the exchange of services and it is regulated by a series of institutions and organizations that seek to guarantee that the services are provided in a competent, ethical and legal manner.
The tertiary sector is also the most extensive and important sector in terms of economic development, as it is responsible for generating more jobs than the primary and secondary industry. According to estimates, it generates around 70% of economic activity at the global level.
Thanks to the operation of the tertiary sector, it is possible to provide various activities of direct benefit to the population, such as access to education, health care, transportation, communication and entertainment. It is a vital element for the generation of wealth and the improvement of living standards.
